A new addition to the many clubs and councils at SMUS, the Investment Club takes over where the Business Club leaves off. Investment Club focuses on how to manage money, not how to earn it.
“This club gives students a sense of how business works and how to work with money,” says Mi Ru Kim, who created the club with fellow student Chris Smith. “Lots of people are interested in investing, but they don’t know how to,” explains Chris.
During first term, members will use a website called Investopedia to ‘invest’ in real stocks using fake money. “You can invest in any company you want,” says Chris. “If you think the iPhone is going to be big, you can invest in Apple.” The students start off with $100,000 and at the end of the term the member with the most profits will win a prize.
“It’s meant to be for practice,” says Mi Ru. To get the students started, she prepared a tip sheet to summarize what stocks are, how they work and strategies to maximize profits. “When you invest money in a company, they invest it into production, which leads to profits,” explains Mi Ru. “The company’s profits are used in determining the value of their stock.”
In second term, the students will get an opportunity to discuss investment with an actual broker. Under the supervision of Mr. Liggett, the club meets Mondays in CR116.